If SmartestEnergy supplies you and you've never had a contract with it, for example as a new tenant, you pay its deemed rates. When a contract ends without a renewal, you're billed out-of-contract rates, and SmartestEnergy says these are the same as its deemed rates.
SmartestEnergy deemed and out-of-contract rates
What SmartestEnergy calls them:
- Deemed rates are for new owners or tenants who haven't agreed a contract, and for anyone it supplies who has never had a contract with it.
- Out-of-contract rates are charged when your contract has ended or been terminated without a renewal. SmartestEnergy says the terms of your old contract stay in force, and that the rates are the same as its deemed rates.
Where SmartestEnergy publishes its rates: on its out-of-contract and deemed rates page (opens in a new tab). You'll find electricity rates there for both half-hourly and non-half-hourly meters, along with gas rates and the deemed terms for each. Older rates are available on request.
How to move off them: SmartestEnergy suggests that customers on these rates get in touch through its contact form to talk about a contract. You can also get quotes from other suppliers. If you're out of contract, check your old contract for any notice period, because its terms still apply. If you're a microbusiness, you don't have to give notice to leave out-of-contract rates.
Are you on them?
Have a look at your latest bill. You're probably on deemed or out-of-contract rates if:
- it says "deemed", "out of contract", "variable" or "default";
- it shows no contract end date, or one that has passed;
- you moved into the premises and never agreed a contract;
- your rates went up sharply around the date your contract was due to end.
Our guide to deemed and out-of-contract rates explains the difference between the two, and your rights.
On SmartestEnergy deemed or out-of-contract rates? Our free check compares your rates, standing charges and contract terms with today's market. A specialist will then ring to talk you through it, with no obligation. You don't need a bill to start.
What the rules say
Ofgem, the energy regulator, requires suppliers to take all reasonable steps to make sure their deemed contract terms aren't "unduly onerous", and to keep their deemed rates easy to find. Deemed rates can still cost more than a contract, because your supplier can't buy your energy in advance.
There's no fixed term on deemed rates, so you can move onto a contract whenever you're ready. If you're a microbusiness on out-of-contract rates, you don't have to give notice or pay a termination fee to leave them. Larger businesses should check their old contract for a notice period. For a microbusiness on a rolling (evergreen) contract, the notice can't be longer than 30 days.
You can usually move onto a new contract at any time, so it's worth comparing business electricity and gas prices.
Ready to get off deemed rates? Our free check compares your rates, standing charges and contract terms with today's market. A specialist will then ring to talk you through it, with no obligation. You don't need a bill to start.
Questions about SmartestEnergy deemed rates
Are SmartestEnergy's out-of-contract rates the same as its deemed rates?
Yes. SmartestEnergy says out-of-contract customers are billed at the same rates as deemed customers.
Do my old contract terms still apply when I'm out of contract with SmartestEnergy?
Yes. SmartestEnergy says the terms of an expired or terminated contract stay in force until you renew or move supplier.
Can I switch supplier while I'm on deemed rates?
Yes. Deemed rates have no fixed term, so you can agree a contract with your current supplier or switch to another one. You'll stay on deemed rates until the switch goes through, which can take a few weeks.
Are deemed rates the same as out-of-contract rates?
Not always. Deemed rates apply when you use energy with no contract in place, such as after moving in, while out-of-contract rates apply when your contract ends without a new one. Some suppliers charge the same for both.
Sources
- SmartestEnergy, out-of-contract and deemed rates page (opens in a new tab)
- Ofgem, guidance on deemed contracts
- Ofgem, get a business energy contract
- Ofgem, electricity supply standard licence conditions: condition 7A, including leaving out-of-contract rates without notice or a termination fee (7A.13B).
Energybench isn't connected with SmartestEnergy. This page is based on SmartestEnergy's own published information and Ofgem's rules.